AMZN Amazon.com Inc

By Nicolas Parasie 

DUBAI-- Amazon.com Inc. said Tuesday it is acquiring Dubai-based Souq.com, placing one of its biggest global bets in recent years on the small but rapidly expanding Middle Eastern online shopping market.

Amazon didn't give a value but bankers familiar with the deal said it was worth around $700 million. The acquisition represents one of the biggest in recent years for the global giant, which has spent heavily on expanding its footprint around the world, but doesn't often splash out taking over whole companies.

"Souq.com pioneered e-commerce in the Middle East, creating a great shopping experience for their customers," Russ Grandinetti, Amazon's senior vice president for international consumer, said in a statement.

Amazon will support it with technology and global resources, and "together, we'll work hard to provide the best possible service for millions of customers in the Middle East," he added.

Souq.com, founded in 2005 by Syrian entrepreneur Ronaldo Mouchawar, has grown into one of the region's biggest e-commerce businesses--offering over 8.4 million products--with around 6,000 employees and is active across the Persian Gulf countries and Egypt.

"By becoming part of the Amazon family, we'll be able to vastly expand our delivery capabilities and customer selection much faster, as well as continue Amazon's great track record of empowering sellers," Mr. Mouchawar said.

The acquisition is expected to close in 2017.

Write to Nicolas Parasie at nicolas.parasie@wsj.com

(END) Dow Jones Newswires

March 28, 2017 06:33 ET (10:33 GMT)

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